Zinc buy

Zinc price is at the beginning of the uptrend

30 March 2023 168
Zinc price is at the beginning of the uptrend

Zinc producer Nexa Resources announced that it has restarted operations at its Cerro Lindo project in Peru. In addition, access to the well was restored.

Nevertheless, repair operations on some of the drainage systems at the well are continuing. Meanwhile, production is currently running according to the plan of 17,000 tons per day, the company said.

The dehydration of the well is also on schedule and is expected to be completed within 15 days. It should be noted that the company previously stopped production at Cerro Lindo due to the consequences of Cyclone Yaku.

The company expects to compensate for its first-quarter production losses by the end of 2023. Thus, the forecast for zinc production for the current year remains unchanged.

The reopening of the Cerro Lindo could lead to increases in zinc production, which could reduce prices for the metal, but not significantly. If the company can recover production losses for the first quarter of 2023 during the remaining quarters of this year, it could soften the impact on the price. Zinc quotations, as well as quotations of other non-ferrous metals depend on current situation at the world market and demand for the metal.

The industrial crisis in Europe has reduced demand for non-ferrous metals, in particular zinc. Now the demand for base metals is slowly increasing in the Asian market.

The zinc price broke out of the H4 timeframe downtrend, indicating that a new trend is forming. On the hourly timeframe, the price is correcting forming a rising trend, getting closer to upward support. Stochastic Oscillator indicator (standard values) indicates that the price is in the oversold area, which suggests buying zinc on profitable positions. An additional signal to open a buy trade is a possible rebound from the rising support of the rising channel of the H1 of the timeframe.

 

Signal:

The short-term prospects for zinc - buying

The target is at the level of 3095.

Part of the profit should be fixed near the level of 3019.

The stop-loss is at the level of 2897.

"Bullish" trend has a card-like character, so the volume of trade should be less than 2% of your balance.

This content is for informational purposes only and is not intended to be investing advice.

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